Restaurant sales in the first quarter of 2018 increased 11.0% to
$110.4 million compared to $99.5 million in the first quarter of 2017.

The Company reported net income of $13.6 million, or $0.45 per diluted
share, in the first quarter of 2018, compared to net income of $11.0
million, or $0.35 per diluted share, in the first quarter of 2017.

Income from continuing operations in the first quarter of 2018 was
$13.6 million, or $0.45 per diluted share, compared to income from
continuing operations of $11.1 million, or $0.35 per diluted
share, in the first quarter of 2017.

Net income in the first quarter of 2018 included a $0.4 million
income tax benefit, while net income in the first quarter of 2017
included a $0.2 million income tax benefit, both related to the
impact of discrete income tax items.

Net income in the first quarter of 2018 also included $0.5 million
in deal-related expenses associated with the acquisition of our
Hawaiian franchisee.

Excluding these adjustments, as well as the results from
discontinued operations, non-GAAP diluted earnings per common
share were $0.45 in the first quarter of 2018, compared to $0.35
in the first quarter of 2017. The Company believes that non-GAAP
diluted earnings per common share provides a useful alternative
measure of financial performance. Investors are advised to see the
attached Reconciliation of non-GAAP Financial Measure table for
additional information.

Michael P. O'Donnell, Chairman and Chief Executive Officer of Ruth's
Hospitality Group, Inc., noted, “I am very pleased with our first
quarter results and a solid start to 2018. Our total revenues increased
by 10%, and were lifted by positive comparable sales, despite the
challenges of increased winter weather. Our newly acquired Hawaiian
restaurants also started the year strong, achieving or beating our
expectations while growing sales and profits year over year.”

Review of First Quarter 2018 Operating Results

Total revenues in the first quarter of 2018 were $116.5 million, an
increase of 10.4% compared to $105.5 million in the first quarter of
2017.

The 53rd week of 2017 made a particularly strong contribution to
the Company’s earnings as it contained both Christmas Day and New
Year’s Eve. As a result, the first quarter fiscal comparison began
the year approximately $3 million lower than 2017 and impacted
comparable sales in the first quarter by approximately 300 basis
points.

The calendar shift of Easter from the second quarter of 2017 into
the first quarter of 2018 positively impacted first quarter 2018
comparable restaurant sales by approximately 70 basis points.

Adjusting for the timing of the 53rd week of 2017 and
measuring performance on a comparable calendar basis, Company-owned
comparable restaurant sales increased 1.1%, which consisted of a
traffic increase of 0.1%, as measured by entrees, and an average check
increase of 1.0%.

Fiscal average unit weekly sales were $110.3 thousand in the first
quarter of 2018, compared to $111.1 thousand in the first quarter of
2017.

77 Company-owned Ruth’s Chris Steak House restaurants were open at the
end of the first quarter of 2018, compared to 70 Ruth’s Chris Steak
House restaurants at the end of the first quarter of 2017. Total
operating weeks for the first quarter of 2018 increased to 1,001 from
895 in the first quarter of 2017.

Franchise Income

Franchise income in the first quarter of 2018 was $4.4 million, an
increase of 0.6% compared to $4.4 million in the first quarter of
2017. The increase in franchise income was driven by the impact of the
new revenue recognition standard, partially offset by the acquisition
of the Hawaii restaurant locations and a 0.8% decrease in comparable
franchise restaurant sales.

74 franchisee-owned restaurants were open at the end of the first
quarter of 2018 compared to 81 at the end of the first quarter of 2017.

Operating Expenses

Food and beverage costs, as a percentage of restaurant sales,
decreased 28 basis points to 28.5%, primarily driven by an increase in
average check of 1.0%, offset partially by a 2.4% increase in total
beef costs.

Restaurant operating expenses, as a percentage of restaurant sales,
increased 113 basis points to 46.8%. The increase in restaurant
operating expenses as a percentage of restaurant sales was primarily
due to an increase in occupancy related expenses.

General and administrative expenses, as a percentage of total
revenues, were unchanged year-over-year at 7.7%.

Marketing and advertising costs, as a percentage of total revenues,
increased 67 basis points. The increase in marketing and advertising
costs in the first quarter of fiscal year 2018 was primarily
attributable to a planned increase in advertising spending, in
addition to the reclassification of certain administrative support
costs that have been historically charged to general and
administrative costs.

Pre-opening costs were $0.1 million compared to $1.2 million in the
first quarter of 2017, driven by the timing of new restaurant openings.

Income tax expenses declined from $5.0 million in the first quarter of
2017 to $2.4 million largely as a result of the enactment of the Tax
Cuts and Jobs Act (H.R. 1).

Development Update

The Company expects to open a new restaurant in Jersey City, NJ in the
third quarter of 2018. The Company recently announced a new restaurant
opening under a management agreement in Reno, NV in partnership with El
Dorado Resorts. This restaurant is scheduled to open late in the fourth
quarter of 2018. Additionally, the Company has signed a new lease for a
Company-owned restaurant in Paramus, NJ, expected to open in the first
half of 2019.

Franchise partners expect to open two new restaurants in 2018. The first
in Fort Wayne, IN will open next week on May 7th, and another
in Markham, Ontario is expected to open in the fourth quarter. Our
franchise partner in Ridgeland, MS closed its restaurant during the
first quarter of 2018. Also during the first quarter, the Company
terminated the franchise agreement of one of the international
franchisee-owned Ruth’s Chris Steak House restaurants.

Share Repurchase and Debt

The Company did not repurchase any shares during the first quarter of
2018. At the end of the quarter, the Company had approximately $50.7
million remaining under its share repurchase authorization.

During the quarter, the Company repaid $7 million in debt under its
senior credit facility. At the end of the first quarter of 2018, the
Company had $43 million in debt outstanding under that facility, with an
additional $43 million of availability.

Quarterly Cash Dividend

Subsequent to the end of the quarter, the Company’s Board of Directors
approved the payment of a quarterly cash dividend to shareholders of
$0.11 per share. The dividend will be paid on June 7, 2018 to
shareholders of record as of the close of business on May 24, 2018, and
represents a 22% increase from the quarterly cash dividend paid in May
of 2017.

Accounting Policy and Standard Changes

The Company has adopted ASU number 2014-09, which is generally referred
to as the new revenue recognition standard. The new standard, which
became effective for the Company beginning in the first quarter of 2018,
now requires that advertising contributions received from franchised
restaurants be recognized as franchise income. In 2017, these
contributions were credited against marketing expenses. The impact of
this standard change will increase franchise income in 2018 by
approximately $1.5 million, and increase marketing and advertising
expense by a similar amount. Beginning in 2018, the Company now
recognizes initial franchise fees ratably over the franchise agreement
term compared to the previous practice of recognizing the fees upon
completion of all material obligations, which generally occurred upon
the opening of the restaurant. The overall impact of the change to the
recognition of initial franchise fees is expected to be immaterial to
the Company’s net results.

The Company has moved certain marketing support costs that have been
historically allocated to general and administrative expenses into the
marketing line. The net impact of this reclassification is neutral, but
will increase marketing and advertising expenses and decrease general
and administrative expenses by a similar amount.

Also in 2018, the Company made a change to its policy on comparable
restaurants. The previous approach required that a new restaurant be
placed into the comp base during the first quarter after the restaurant
was open for 15 months and this was measured quarterly. The Company has
now shifted to an 18 month period and will now measure annually. This
means that a restaurant will enter the comp group in the first quarter
of the year if it has been open for 18 months.

Financial Outlook

Based on current information, Ruth's Hospitality Group, Inc. is
reaffirming its full year 2018 outlook based on a 52 week year ending
December 30, 2018, as follows:

Food and beverage costs of 29.0% to 31.0% of restaurant sales

Restaurant operating expenses of 47.0% to 49.0% of restaurant sales

Marketing and advertising costs of 3.8% to 4.0% of total revenue

General and administrative expenses of $32 million to $34 million

Effective tax rate of 19% to 21%

Capital expenditures of $29 million to $31 million

Fully diluted shares outstanding of 30.5 million to 31.0 million
(exclusive of any future share repurchases under the Company's share
repurchase program)

The foregoing statements are not guarantees of future performance, and
therefore, undue reliance should not be placed upon them. We refer you
to our recent filings with the Securities and Exchange Commission for
more detailed discussions of the risks that could impact our financial
outlook and our future operating results and financial condition.

Conference Call

The Company will host a conference call to discuss first quarter 2018
financial results today at 8:30 AM Eastern Time. Hosting the call will
be Michael P. O'Donnell, Chairman and Chief Executive Officer, Arne G.
Haak, Executive Vice President and Chief Financial Officer and Cheryl
Henry, President and Chief Operating Officer.

The conference call can be accessed live over the phone by dialing
323-794-2551. A replay will be available one hour after the call and can
be accessed by dialing 412-317-6671; the password is 4824625. The replay
will be available until Friday, May 11, 2018. The call will also be
webcast live from the Company's website at www.rhgi.com
under the investor relations section.

About Ruth’s Hospitality Group, Inc.

Ruth's Hospitality Group, Inc., headquartered in Winter Park, Florida,
is the largest fine dining steakhouse company in the U.S. as measured by
the total number of Company-owned and franchisee-owned restaurants, with
over 150 Ruth’s Chris Steak House locations worldwide specializing in
USDA Prime grade steaks served in Ruth’s Chris’ signature fashion –
“sizzling.”

For information about our restaurants, to make reservations, or to
purchase gift cards, please visit www.RuthsChris.com.
For more information about Ruth’s Hospitality Group, Inc., please visit www.rhgi.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” that reflect,
when made, the Company’s expectations or beliefs concerning future
events that involve risks and uncertainties. Forward-looking statements
frequently are identified by the words “believe,” “anticipate,”
“expect,” “estimate,” “intend,” “project,” “targeting,” “will be,” “will
continue,” “will likely result,” or other similar words and phrases.
Similarly, statements herein that describe the Company’s objectives,
plans or goals, including with respect to new restaurant openings,
strategy, financial outlook, capital expenditures, our effective tax
rate and the expected impact and timing of integration of the Hawaii
franchisee also are forward-looking statements. Actual results could
differ materially from those projected, implied or anticipated by the
Company’s forward-looking statements. Some of the factors that could
cause actual results to differ include: reductions in the availability
of, or increases in the cost of, USDA Prime grade beef, fish and other
food items; changes in economic conditions and general trends; the loss
of key management personnel; the effect of market volatility on the
Company’s stock price; health concerns about beef or other food
products; the effect of competition in the restaurant industry; changes
in consumer preferences or discretionary spending; labor shortages or
increases in labor costs; the impact of federal, state or local
government regulations relating to Company employees, the sale or
preparation of food, the sale of alcoholic beverages and the opening of
new restaurants; harmful actions taken by the Company’s franchisees; a
material failure, interruption or security breach of the Company’s
information technology network; repeal or reduction of the federal FICA
tip credit; the impact of recent tax legislation and accounting policy
changes; unexpected expenses incurred as a result of the sale of the
Mitchell’s Restaurants; the Company’s ability to protect its name and
logo and other proprietary information; an impairment in the financial
statement carrying value of the Company’s goodwill, other intangible
assets or property; the impact of litigation; the restrictions imposed
by the Company’s Credit Agreement; changes in, or the discontinuation
of, the Company’s quarterly cash dividend payments or share repurchase
program; unanticipated costs associated with the Hawaii franchisee
acquisition; and the Company’s inability to successfully integrate the
Hawaii franchisee restaurants into its operations. For a discussion of
these and other risks and uncertainties that could cause actual results
to differ from those contained in the forward-looking statements, see
“Risk Factors” in the Company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2017, which is available on the SEC’s
website at www.sec.gov.
All forward-looking statements are qualified in their entirety by this
cautionary statement, and the Company undertakes no obligation to revise
or update this press release to reflect events or circumstances after
the date hereof. You should not assume that material events subsequent
to the date of this press release have not occurred.

Unless the context otherwise indicates, all references in this report to
the “Company,” “Ruth’s,” “we,” “us”, “our” or similar words are to
Ruth’s Hospitality Group, Inc. and its subsidiaries. Ruth’s Hospitality
Group, Inc. is a Delaware corporation formerly known as Ruth’s Chris
Steak House, Inc., and was founded in 1965.

RUTH'S HOSPITALITY GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Income - Preliminary and
Unaudited

(Amounts in thousands, except share and per share data)

13 Weeks Ended

13 Weeks Ended

April 1,

March 26,

2018

2017

Revenues:

Restaurant sales

$

110,364

$

99,455

Franchise income

4,417

4,390

Other operating income

1,745

1,693

Total revenues

116,526

105,538

Costs and expenses:

Food and beverage costs

31,405

28,579

Restaurant operating expenses

51,679

45,447

Marketing and advertising

3,477

2,446

General and administrative costs

8,976

8,137

Depreciation and amortization expenses

4,461

3,505

Pre-opening costs

140

1,179

Total costs and expenses

100,138

89,293

Operating income

16,388

16,245

Other income (expense):

Interest expense, net

(380

)

(179

)

Other

12

24

Income from continuing operations before income tax expense

16,020

16,090

Income tax expense

2,384

5,005

Income from continuing operations

13,636

11,085

Income (loss) from discontinued operations, net of income taxes

10

(37

)

Net income

$

13,646

$

11,048

Basic earnings per common share:

Continuing operations

$

0.46

$

0.36

Discontinued operations

-

-

Basic earnings per share

$

0.46

$

0.36

Diluted earnings per common share:

Continuing operations

$

0.45

$

0.35

Discontinued operations

-

-

Diluted earnings per share

$

0.45

$

0.35

Shares used in computing net income per common share:

Basic

29,689,870

30,575,224

Diluted

30,384,180

31,253,186

Dividends declared per common share

$

0.11

$

0.09

RECONCILIATION OF NON-GAAP FINANCIAL MEASURE

We prepare our financial statements in accordance with U.S. generally
accepted accounting principles (GAAP). Within our press release, we make
reference to non-GAAP diluted earnings per common share. This non-GAAP
measurement was calculated by excluding certain items and results from
discontinued operations and certain discrete income tax items. We
exclude the impact of acquisition related costs, the results from
discontinued operations and certain discrete income tax items because
these items are not reflective of the ongoing operations of our
business. This non-GAAP measurement has been included as supplemental
information. We believe that this measure represents a useful internal
measure of performance. Accordingly, where this non-GAAP measure is
provided, it is done so that investors have the same financial data that
management uses in evaluating performance with the belief that it will
assist the investment community in assessing our underlying performance
on a quarter-over-quarter basis. However, because this measure is not
determined in accordance with GAAP, such a measure is susceptible to
varying calculations and not all companies calculate the measure in the
same manner. As a result, the aforementioned measure as presented may
not be directly comparable to a similarly titled measure presented by
other companies. This non-GAAP financial measure is presented as
supplemental information and not as an alternative to diluted earnings
per share as calculated in accordance with GAAP.

Reconciliation of Non-GAAP Financial Measure - Unaudited

(Amounts in thousands, except share data)

13 Weeks Ended

13 Weeks Ended

April 1,

March 26,

2018

2017

GAAP Net income

$

13,646

$

11,048

GAAP Income tax expense

2,384

5,005

GAAP (Income) loss from discontinued operations

(10

)

37

GAAP Income from continuing operations before income tax expense

16,020

16,090

Adjustments:

Hawaii acquisition costs

452

-

Adjusted net income from continuing operations before income taxes

16,472

16,090

Adjusted income tax expense (1)

(2,492

)

(5,005

)

Impact of excluding certain discrete income tax items

(358

)

(247

)

Non-GAAP Net income

$

13,622

$

10,838

GAAP Diluted earnings per common share

$

0.45

$

0.35

Non-GAAP Diluted earnings per common share

$

0.45

$

0.35

Weighted-average number of common shares outstanding - diluted

30,384,180

31,253,186

(1) Adjusted income tax is calculated by multiplying the Non-GAAP
adjustments by our marginal federal and state income tax rates and
adding or subtracting the result to/from our GAAP income tax expense.